Lead

US President Donald Trump has abandoned a plan to charge a 20% fee on cargo transiting the Strait of Hormuz, following opposition from Gulf state leaders and concerns raised by his own advisors. The proposed fee, which was announced on July 13, was intended as reimbursement for ensuring safe navigation in the strategic waterway, but was scrapped a day later in favor of trade and investment agreements.

Coverage Comparison

Reports from multiple outlets detail the sequence of events leading to Trump's reversal. The Jerusalem Post, citing a CNN report, said that leaders from Saudi Arabia, the United Arab Emirates, Bahrain, and Qatar were among those who convinced Trump to abandon the proposed fee. The same report noted that Trump's announcement on Truth Social describing the fee as "necessary to do the job of providing safety and security" in the waterway had shocked US allies and many Trump aides.

TASS, the Russian state news agency, reported on Trump's own statements at a meeting with Iraqi Prime Minister Ali al-Zeidi on July 14, in which he acknowledged that Gulf countries spoke out against his idea. According to TASS, Trump said he had been contacted by the leaders of the Gulf countries and that "we'd love to do it a different way."

Both outlets agree that the fee was dropped and replaced with a new approach, but they differ in emphasis. The Jerusalem Post focuses on the role of Gulf state pressure and advisor warnings, while TASS reports Trump's comments that "no one should be able to charge a fee for the passage through the strait or for any other strait."

Key Claims

Trump's Announcement and Rationale

Trump initially proposed the 20% fee on cargo transiting the Strait of Hormuz, describing it as a means of reimbursement for ensuring safe navigation in the waterway. The announcement was made on July 13, and Trump later explained that the fee was "a reimbursement" for the US role in providing security. TASS reported that on July 13, Trump said the US wanted to control the Strait of Hormuz and receive compensation equal to 20% of the value of cargo transported through the waterway.

Gulf State Opposition

Gulf state leaders actively lobbied Trump to reverse the decision. According to the Jerusalem Post's report, appeals came from Saudi Arabia, the United Arab Emirates, Bahrain, and Qatar. Trump himself acknowledged the Gulf countries' opposition, saying he was contacted by their leaders. The Jerusalem Post report noted that the leaders' intervention was part of a broader effort to dissuade Trump from implementing the plan.

Advisor Warnings

The Jerusalem Post reported that Trump's advisors warned him that mandating the fees could undermine US goals in the Strait of Hormuz and potentially validate Iran's continued aggression towards commercial vessels in Tehran's eyes. Despite these objections, Trump's announcement prompted a scramble within the White House to outline the logistics of the tolling system, with staff working to determine who would pay and how fees would be collected.

Replacement with Investment Deals

Trump abandoned the fee in favor of trade and investment agreements with Gulf states. According to TASS, Trump stated that the new approach would be more effective in achieving US goals in the region. The Jerusalem Post similarly noted that the fee was replaced by US-Gulf state investment deals.

International Legal Position

US Secretary of State Marco Rubio stated on June 23, answering questions upon arrival in Abu Dhabi, that collecting fees for the passage of vessels through the Strait of Hormuz by any state would be illegal. On June 25, at a meeting with the foreign ministers of the Gulf countries in Bahrain, he reiterated that the US considers the Strait of Hormuz an international waterway and does not accept possible collection of fees by Iran for the passage of vessels through it. Rubio's statements were reported by TASS.

Perspectives

Trump Administration

President Trump defended his initial proposal as a reimbursement for US efforts to ensure safe navigation, but ultimately reversed course, saying "I don't think anybody should be able to charge a fee for the passage through the strait or for any other strait." He acknowledged the Gulf countries' opposition and indicated a preference for a different approach.

Gulf State Leaders

Leaders of Saudi Arabia, the United Arab Emirates, Bahrain, and Qatar opposed the fee and contacted Trump to convince him to abandon the plan. Their appeals were successful, as Trump agreed to replace the fee with trade and investment deals.

US State Department

Secretary of State Marco Rubio articulated a legal position that charging fees for passage through the Strait of Hormuz would be illegal, as the US considers it an international waterway. This position was stated before Trump's announcement and aligns with the eventual reversal.